Bank of America Global Research discusses EUR/USD technical outlook and likes buying dips near 1.16 in Q2.
"Daily technicals paint a path lower to the 1.16. If our wave count is correct, a 335 correction should complete in Q2 and euro becomes an exit short / go long near the Oct-Nov 2020 lows. Our conviction is mixed because of the balanced arguments on the weekly chart," BofA notes.
"We lean slightly towards buying 1.16-1.17 due to the secular breakout in 2020...The price action at the end of wave C is similar to the end of Wave A. If euro does test 1.16 in Q2, bounces in Q3 it could be another head and shoulders top that takes euro to 1.09 in 4Q21-1Q22," BofA adds.